The first power units of the 470 MW
Balaklavskaya and Tavricheskaya TPPs came into operation in October 2018.

* * *

President of Russia Vladimir Putin: Colleagues, friends,

March 18 is a big day for Sevastopol, Crimea and the rest of the country. Five years ago today, Crimea
and Sevastopol reunited with Russia. Back in 2014, we knew that there was a lot
of hard work ahead. Today we are working according to plan, consistently and systemically, and this work is yielding fruit thanks to our common efforts.

Today we have taken one more step
towards strengthening the energy security of the Crimean Peninsula and southern
Russia as a whole, and towards the further development of the region’s economy
and infrastructure. A new modern
substation, Port, will come into operation in the Krasnodar Territory. We need
it for developing the Taman seaport and to ensure the operation of the Crimean
Bridge. The Sevastopol (Balaklavskaya) and Simferopol (Tavricheskaya) thermal
power plants will reach full production capacity. These plants have been
supplying energy since last October. Today we will launch two new power unit,
one at each plant. Their total capacity will double to 940 MW or as much as Crimea used to receive from the neighbouring country in the past; this is 90
percent of Crimea’s current consumption.

I would like to express my gratitude to everyone who contributed to the creation of these vital energy
facilities. I would like to remind you that in 2014 the volume of electricity
produced on the Crimean Peninsula was only 160 MW. It was clearly not enough,
even with additional supplies from Ukraine, to ensure the uninterrupted work
and the supply of electricity to residential buildings, hospitals and schools,
let alone for boosting the development of peninsula, connecting new users to the power lines and stimulating the industry, business and tourism. No, it was
definitely not enough.

Since then, the situation has
changed dramatically. We have built a power bridge connecting Crimea to the Unified Energy System, as well as modern power stations. We have modernised and expanded the grid system, which is very important. Energy consumption in Crimea
today is between 1,000 and 1,100 MW. With the launch of these new capacities,
the energy capacity of Crimea and Sevastopol will reach some 2,070 MW. This
will be enough not only to meet our own needs but, if necessary, to export
electricity to the neighbouring regions of the country.

I would like to once again express
my heartfelt gratitude to all the professionals who contributed to this
complicated project, which the people need so much. You have fulfilled a task
of national importance, and I am not exaggerating.

I wish you every success and all the very best.

Thank you.

Minister of Energy Alexander Novak: Mr President,

In 2014, you set the goal to ensure steady
and safe energy supplies to Crimean households, industrial consumers, sociocultural
institutions and health resorts. Indeed, much has been accomplished since 2014,
which you just mentioned, including the construction of an energy bridge,
laying a 360-kilometre gas pipeline and a high-pressure gas pipeline to provide
residents of Crimea with gas, and the construction of 1,600 kilometres of high-voltage
overhead lines.

Today, we are practically at the final stage of building a reliable power supply chain for Crimea,
namely, the commissioning of two key facilities for own power generation: the Balaklavskaya
TPP in the city of Sevastopol and the Tavricheskaya TPP in the city of Simferopol. These two plants will, in fact, as you have already noted, fully
provide the residents of Crimea with their own electricity and power generation.
And this is if we exclude renewable energy sources, which are also widely
present here in Crimea as additional energy sources.

Speaking of current consumption, the Crimeans will from now on enjoy an almost double stand-by capacity of their own
energy supply and an opportunity to expand their industrial enterprises and consumption in order to develop the region’s economy.

Technopromexport, which is part of Rostec
state corporation, has implemented a project worth 71 billion rubles using the latest
combined-cycle technology. The overall plant efficiency stands at 51.6 percent which
is a very high number, and hi-tech environmentally-friendly
solutions significantly reduce the consumption of drinking water. Russian dry
cooling tower technology was used for the first time. This is a really
important stage in the development of not only the energy sector of Crimea, but
Russia’s energy sector in general, since modern Russian technologies have been put
to work.

The third site on the Taman
Peninsula, which you also mentioned today, a 220 kV substation with 438 MVA and 188 kilometres of overhead lines, will be put into operation today. It will, primarily,
ensure the development of the Taman Peninsula and the transport corridor, including
the Crimean Bridge, and hook up new consumers in the Krasnodar Territory.

Mr President, the opening of these
facilities today will not only make it possible to reliably and safely supply
Crimeans and the Taman Peninsula with energy but also create an energy reserve
for the socioeconomic development of the region.

If you please, we will now confirm
our readiness to put the energy facilities into service.

Report: Mr President, the Balaklavskaya TPP has fully completed building, installation and start-up works and is ready for load acceptance.

Vladimir Putin: Thank you.

Alexander Novak: The Tavricheskaya TPP, please
report on your readiness to put the facility into service.

Report: Mr President, we are at the Tavricheskaya
TPP. We have completed assembly and installation of the main and auxiliary equipment and start-up works. All tests
have been completed. The Tavricheskaya TPP is ready for switch-on.

Rosseti CEO Pavel Livinsky: Mr
President,we
are at the Port substation on the Taman Peninsula, Krasnodar Territory. The assembly of equipment has been fully completed and all tests conducted. The Port substation is ready to join Russia’s United Energy Grid. That concludes my report.

Vladimir Putin: Thank you.

Alexander Novak: Mr President,

In accordance with these reports,
the equipment of the Balaklavskaya and Tavricheskaya TPPs and the Port
substation is ready to be put into operation. Please give the go-ahead to start
the launch procedure.

Vladimir Putin: Go ahead please.

Alexander Novak: Teams at the Balaklavskaya and Tavricheskaya
thermal power plants and the Port substation, please put the facilities into
operation.

Mr President, the Balaklavskaya and Tavricheskaya
TPPs have reached their capacities in full, all four 235 MW units. The Port
substation has been launched.

Vladimir Putin: Thank you.

The Balaklavskaya and Tavricheskaya TPPs
will give us 940 MW. The energy bridge connected to the United Energy Grid can give
an additional 850 MW. 160 MW comes from older facilities. Another 129 MW will
be produced by the new Sakskaya TPP that is now undergoing comprehensive tests
in preparation for launching. And so we have completed the bulk of the work but
there is still much to do, including on grids. I would like to thank you for what has already been done, I hope you will continue working just as good as you have been doing up to now.